How to become a Forex Trader.

Plan to become a Forex Trader

It is quite feasible to start your trading journey with $50 and I present here a plan to do just that. Remember you will be a beginner learning a new skill and all skills take time to learn, to make a success of it you will need to give yourself 12 months and apply yourself to learning the market before developing your own trading plan. It is not until you have a profitable and repeatable trading plan that you can consider yourself a trader. Once you make it as a trader you can make a lot of money but it is not simple, there is no magic system nobody has ever solved the market however the retail forex industry is packed with people selling systems that guarantee profits. I can tell you no such system exists, indeed it cannot exist for the market to operate, a guarantee would mean a risk free way of investing and that would violate the very existence of a market. The PlanI thought long and hard about how to become a trader with just $50, you cant afford to buy books or pay for advice s you have to do it the hard way and the free way. You must protect that $50 it is going to be your ammunition. I started 15 years ago with $100 my wife gave me as a christmas present, it took me longer than the twelve months I present here but i did not have this route map to follow. That original $100 has lead to my current position as a full time trader and i earn more than i did as a maths teacher! The time i invested in learning this market has repaid me many times over.

Months 1-3 Learn the Basics

Open a demo account with a broker, a demo account allows you to practice trading with play money. You need to learn how the whole thing works from placing trades, to hours and calendars.

Go to www.dailyfx.com navigate to their education section and study their 4 stage university. It is the best forex education you can get, study it as you would a college course. Read around the subjects and critically assess everything they present.

Months 4-6

Find a few traders to follow the trades of, I suggest from Dailyfx John Kicklighter and Ilya Spivak. Sign up to their emails, listen to at least two Kichlighter videos a week and follow Ilya’s trades. Place them on your demo account and watch how they do. With each trade think about the things you learnt in the University Review the reasoning and the result. You could also follow my trades but I do not claim to be as good as the guys at dailyfx.com

Continue to analyse the market trying out different technical patterns from th euniversity, begin to decide what sort of trader you are going to be.

It may be worth improving your economics at this point coursera offer many macroeconomic courses without charge, I strongly advise you to take one. You don’t need to be an economist but you do need to understand the basics. If anything by Perry Mehrling is available take it, he has the best understanding of the markets.

Months 7-9

Open a realmoney $50 account, you need to find a broker that covers your area, is regulated and has a good reputation. Forexpacearmy.com is a great resource for checking the brokers.

Trade the minimum, 1 trade at a time. After every trade check what you did and how it went. Practise discipline, practice accuracy and keep good records

Months 10-12

Write your trading plan, it will keep changing for the next year, if it is not working change it slowly and carefully until you are convinced it is good.

Trade small, one trade at a time, minimum bets. Keep reviewing what happened

Year 2

This is time to practise your technique, remember you are looking for consistency, do not be concerned with the amount of money at this point, stick to your plan and trade it with care. Slowly build your balance and confidence.

Year 3

You will eiter be or close to being a profitable trader, keep building the bank balance and decide what the next steps are for yourself.

RetiredearlyFX is a trading name of the investment company Bagehotsway.We are not a regulated company but we only sell regulated products.We are not authorised to give investment advice.We believe all figures quoted to be accurate but past performance in no way guarantees future performanceTrading FX is high risk and not suitable for everyone.